Budget 2025: Game-Changing Move - Govt Extends Ayushman Bharat Health Cover to 1 Crore Gig Workers

The Union Budget for 2025 has unveiled a groundbreaking announcement that aims to revamp the healthcare landscape for India's burgeoning gig economy. The government has extended the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) to cover nearly 1 crore gig workers across the nation. This landmark decision is set to provide these workers with free health insurance coverage up to ₹5 lakh annually, a move that signifies a significant step towards recognizing the critical role gig workers play in India's economy.

Introduction to the Gig Economy in India

India's gig economy is witnessing rapid growth, with projections indicating that gig workers will constitute about 4.1% of the workforce by 2030, translating to approximately 23.5 crore people[1][2]. Gig workers engage in short-term, flexible jobs, often through digital platforms, providing services such as cab driving, food delivery, freelance work, and more[2][3]. This shift towards temporary employment arrangements is driven by the increasing demand for flexible work opportunities and the rise of digital platforms like Uber, Ola, Swiggy, and Zomato.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

Launched in 2018, AB-PMJAY is a flagship healthcare initiative aimed at providing universal health coverage. It offers eligible families free treatment up to ₹5 lakh per year for secondary and tertiary hospitalizations at over 25,000 empanelled public and private hospitals across India[2][3]. This program is managed by the National Health Authority (NHA) and covers pre-existing conditions without any waiting period[2].

Benefits for Gig Workers

The inclusion of gig workers under AB-PMJAY is part of a broader strategy to enhance social security measures for this workforce. Key benefits include:

• Health Insurance Coverage: Up to ₹5 lakh annually for every family, covering secondary and tertiary care.
• No Waiting Period: Immediate coverage without restrictions on pre-existing conditions.
• Simplified Registration: Gig workers can access these benefits through registration on the e-Shram Portal and their Universal Account Number (UAN)[2][3].
• Universal Account Number (UAN): Facilitates easy access to healthcare benefits.

Implementation Strategy

To ensure seamless implementation, the government will focus on the following strategies:

1. Registration on e-Shram Portal: This will provide gig workers with identity cards, enabling them to access various social welfare schemes[4].
2. Data Sharing by Aggregator Platforms: While preparations are nearly complete, a major hurdle remains the need for mandatory data sharing by companies like Uber and Ola to accurately register workers[5].
3. Comprehensive Social Security Framework: The government is evolving a framework to include life and disability cover, accidental insurance, health and maternity benefits, and old-age protection for gig workers[5].

Challenges and Future Directions

Despite the significant progress made with this announcement, several challenges remain:

• Implementation Hurdles: Ensuring that gig workers are aware of and can access these benefits poses a significant challenge. This includes the integration of e-Shram portal registration with existing welfare schemes[5].
• Data Sharing Compliance: Aggregator platforms must comply with mandatory data sharing to ensure accurate registration and access to benefits[5].
• Comprehensive Legislation: The absence of a comprehensive national law and dedicated welfare board for gig workers remains a gap in their social security framework[5].

Impact and Significance

This initiative underlines the government's commitment to recognizing the contributions of gig workers and addressing their vulnerabilities. The extension of healthcare benefits under AB-PMJAY is a pivotal step towards universal health coverage, aligning with the National Health Policy 2017 goals[1]. It also reflects an understanding of the gig economy's growing importance in India's new-age services sector.

Conclusion

The Budget 2025 announcement for extending Ayushman Bharat coverage to 1 crore gig workers is a transformative step toward recognizing these workers as integral to India's economy. As the gig workforce continues to grow, initiatives like these will play a crucial role in ensuring equity, security, and well-being for millions of workers. With ongoing preparations for scheme rollout almost complete, this move marks a significant leap towards bridging the healthcare gap for a critical yet often overlooked segment of India's workforce[4].

Keywords Used:

• Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)
• Gig Workers
• Gig Economy
• Health Insurance for Gig Workers
• e-Shram Portal
• Universal Health Coverage
• National Health Authority (NHA)
• Budget 2025
• Social Security for Gig Workers